Get KeyedIn to project risk management

Learn how to use the Risk Management module in the KeyedIn Projects application to track your IT project's risk.

As an IT consultant, I have seen project risks tracked in a spreadsheet or similar risk register stored on the project manager's laptop. The risk log is distributed via email and often sanitized to only display the immediate risks that need senior management's attention. This approach works, although there are often version issues as team members look for the latest copy of the risk register. By centralizing all the project risks into an online tool, everyone benefits from one version of the truth.

One company that "gets it" is KeyedIn Solutions. The Minnesota-based Software as a Service (SaaS) solution provider and consulting group helps organizations improve their portfolio management, program management, and project execution capability. I recently got a chance to demo the KeyedIn Projects application. The product has a lot of features that support the entire lifecycle, though this post focuses on the Risk Management module, which is core to the Project Management software tools.

A glance at the Risk Management dashboard (Figure A) provides a snapshot of all the risks and their probability and impact to the project. The dashboard evaluates each risk based on probability, cost impact, time impact, and quality impact. I like this approach to evaluating risk, as many projects use the traffic light status approach for the entire risk. Applying the traffic light to specific risk parameters helps communicate the severity of the risk. Some risks will have a cost impact, others may affect the critical path, and some risks may affect overall quality. By qualifying the different factors, project teams can focus their attention on the important risks.
Figure A

Project risks in the KeyedIn Projects application (Click the image to enlarge it.)

KeyedIn's risk detail (Figure B) allows team members to assign an impact date and a probability level, define impacts, and identify contingency and mitigation plans. The module enables project managers to proactively manage risks across the project lifecycle.
Figure B

KeyedIn Projects also supports contingency planning. Despite a project team's effort to mitigate project risks, some risks will occur on a project. The team needs to have a contingency plan for each risk so appropriate action can be taken.

What about an Excel log?

In some companies, the executive management team isn't going to log in to a tool to view the project status themselves, so they'll get the project manager to summarize the status and represent the relevant risks and issues; this often includes an export of the project issues and risks. Fortunately, KeyedIn Projects also provides an Excel extract with a click of the button.

Pursue proactive risk management

By creating an online risk register that allows project teams to collaborate, project risks can be proactively managed. Realistic contingency plans can be documented, and specific mitigation actions can be individually tracked.

Risk management is also team responsibility. Instead of escalating a risk to the project manager, each team member can participate in the risk management process and maintain accountability for specific risk mitigation actions. By collaborating with KeyedIn, risk management is an active part of the project management process throughout the entire lifecycle.

By Andrew Makar

Dr. Andrew Makar is an IT program manager and is the author of How To Use Microsoft Project and Project Management Interview Questions Made Easy. For more project management advice visit http://www.tacticalprojectmanagement.com.